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Renewable Energy Subsidy

Subsidies are paid for electricity generated from renewable sources, from biomass in CHP mode, or in efficient CHP mode. From 2013 there are also subsidies for the use of the net capacity of oil-shale generating equipment.

Subsidies are paid out as set out in § 59 of the Electricity Market Act in order to promote the use of renewable energy sources, make the energy sector more efficient, and ensure the security of domestic supply and capacity.

According to the Electricity Market Act, it is the TSO, that is, Elering, which pays out the subsidies. The cost of financing the subsidy is passed on to consumers in proportion to their consumption of network services and the amount of electricity consumed through direct lines. Financing for subsidies is described in more detail in the section on Renewable energy charges.

Under § 591 of the Electricity Market Act, producers of electricity from wind energy may receive subsidies until a total of 600 GWh of electricity has been produced from wind sources in Estonia in a calendar year. Calculations are kept separate for each calendar year.

The European Commission has approved and granted state aid permission to the Estonian support scheme for renewable energy sources and highly efficient combined heat and power plants. The state aid permit can be found on the EC website.

Subsidy rate Euro/kWh

Conditions for payment

0,0537

From renewable energy sources, except biomass

0,0537

From biomass in CHP mode

0,032

In efficient CHP mode from waste as defined in the Waste Act, peat or oil shale retort gas

0,032

In efficient CHP mode using generating equipment with a capacity of not more than 10 MW

Registering as a subsidy recipient:

Before you can apply for a subsidy, we will register you as a subsidy recipient. In order to do so, please email your network agreement to resupport@elering.ee, after which we will register you as a subsidy recipient and inform you about the next steps.

If your network agreement was issued prior to November 2015, or your operator is not Elektrilevi OÜ, after we have received your network agreement, we will issue a unique EIC W code for your production equipment.

Please send the confirmation letter that you receive from your network operator by email to resupport@elering.ee, at which point you will be registered as a subsidy recipient and may apply for a subsidy. NB! Please do not confuse this letter with the electrical installation’s Declaration of Conformity.

Under §108 paragraph 3 of the current Electricity Market Act, the start date for the subsidy is deemed to be the date of the declaration of conformity of the production device with the Grid Code, from which point you have the right to receive a renewable energy subsidy for a period of 12 years after the actual start of production with such production device.

Applying for a subsidy

Applications for renewable energy subsidies are done through Elering’s Renewables information system. Subsidies can be requested to be paid out automatically according to a fixed frequency.

The amount of electricity to be subsidised is calculated on the basis of offset hourly data submitted to the grid (electricity transmitted to the grid minus electricity received from the grid per hour), and the rate of the subsidy is 5.37 c/kWh.

Applications must be submitted by the 5th day of the month, and subsidies are paid into the indicated bank account by the 21st day of the month, or the following working day.

Guidelines for submitting an application

Log into green.elering.ee, fill in the required fields, upload the appropriate documents, and submit the application. The information system will calculate the electricity volume eligible for the subsidy and the subsidy amount.

Submitting invoices (VAT payers)

Subsidy applicants who are also liable to pay VAT must submit an invoice based on the Data Warehouse’s data calculations for subsidy applications meeting the legal requirements (NB! The subsidy amount calculated in the Data Warehouse environment are shown without VAT) and send it by email to resupport@elering.ee.

Invoices for the preceding period must be submitted by no later than the 7th day of the month. Subsidies will be paid into the bank account indicated on the invoice by the 21st day of the month or the following working day.

the energy source used for electricity generation and the location of the generation;

production start date (confirmation letter of conformity of production equipment with the Grid Code);

the capacity of the production equipment;

information about investment support received (only for wind energy producers);

licence number and validity start date (only for electricity producers with capacity over 100 kW);

information on environmental permits needed for production.

CHP producers must also submit, in addition to the information above:

data on compliance of the measurement of electrical and thermal energy with relevant Estonian legislation;

the energy source used each time for electricity production;

lower calorific value of the fuel used (MJ/kg; MJ/m3);

amount of useful heat produced and means of usage.

Elering has the right to request data necessary to verify the submitted information from the producer.

If the data submitted by the producer changes, the producer must notify Elering immediately.

After receiving all necessary information from the producer and verifying the data, Elering registers the producer’s production equipment for subsidy receipt and makes a decision on the qualification of the production equipment for receipt of a subsidy.

Guidelines for applying for subsidies

The producer submits an application/invoice to receive a subsidy for electricity produced and offset hourly against the grid for the previous month by the seventh (7th) day of the month by email to resupport@elering.ee. For private individuals and those who are not liable for VAT, the basis for payments is an application submitted through the Data Warehouse. Those liable for VAT need to submit an invoice that complies with the legislation. Invoices for the previous period must be submitted by the 7th day of the month at the latest. The subsidy is paid out to the bank account indicated on the invoice on the 21st day of the month, or on the next working day.

In accordance with the Electricity Market Act, an electricity producer using renewable energy and CHP sources (hereinafter: Producer) has the following monthly obligations:

5th day of the month (working day) – the Producer submits data on total electricity production listed by production equipment to the transmission system operator, Elering, as well as data on electricity volumes produced in the previous month from renewable sources or CHP. Data is submitted electronically to resupport@elering.ee.

7th day of the month (working day) – the Producer submits an application and invoice to receive a subsidy for electricity produced and offset hourly against the grid for the previous month. Invoices are submitted electronically to arved@elering.ee and resupport@elering.ee.

21st day of the month (or the following working day) – Elering pays the invoice based on the subsidy application.

Yearly obligations for determination of the additional costs for financing of renewable energy and CHP subsidies:

1 November – Producers send Elering their production forecasts for the next calendar year. The distribution network operator and line possessor send Elering their forecasts for the volume of network services offered and the volume of electricity consumed through the producer’s line for the next calendar year.

1 December – Elering publishes information on the next year’s additional costs for financing of renewable energy and CHP subsidies on its website.

Before you can apply for a subsidy, we will register you as a subsidy recipient. In order to do so, please email your network agreement to resupport@elering.ee, after which we will register you as a subsidy recipient and inform you about the next steps.

If your network agreement was issued prior to November 2015, or your operator is not Elektrilevi OÜ, after we have received your network agreement, we will issue a unique EIC W code for your production equipment.

Please send the confirmation letter that you receive from your network operator by email to resupport@elering.ee, at which point you will be registered as a subsidy recipient and may apply for a subsidy. NB! Please do not confuse this letter with the electrical installation’s Declaration of Conformity.

Under §108 paragraph 3 of the current Electricity Market Act, the start date for the subsidy is deemed to be the date of the declaration of conformity of the production device with the Grid Code, from which point you have the right to receive a renewable energy subsidy for a period of 12 years after the actual start of production with such production device.

Applying for a subsidy

Applications for renewable energy subsidies are done through Elering’s Renewables information system. Subsidies can be requested to be paid out automatically according to a fixed frequency.

The amount of electricity to be subsidised is calculated on the basis of offset hourly data submitted to the grid (electricity transmitted to the grid minus electricity received from the grid per hour), and the rate of the subsidy is 5.37 c/kWh.

Applications must be submitted by the 5th day of the month, and subsidies are paid into the indicated bank account by the 21st day of the month, or the following working day.

Guidelines for submitting an application

Log into green.elering.ee, fill in the required fields, upload the appropriate documents, and submit the application. The information system will calculate the electricity volume eligible for the subsidy and the subsidy amount.

Submitting invoices (VAT payers)

Subsidy applicants who are also liable to pay VAT must submit an invoice based on the Data Warehouse’s data calculations for subsidy applications meeting the legal requirements (NB! The subsidy amount calculated in the Data Warehouse environment are shown without VAT) and send it by email to resupport@elering.ee.

Invoices for the preceding period must be submitted by no later than the 7th day of the month. Subsidies will be paid into the bank account indicated on the invoice by the 21st day of the month or the following working day.

Data required in initial applications

Electricity producer using renewable sources:

When submitting an initial application for a subsidy, a renewable energy producer must submit the following data in free format by email to Elering at resupport@elering.ee:

the energy source used for electricity generation and the location of the generation;

production start date (confirmation letter of conformity of production equipment with the Grid Code);

the capacity of the production equipment;

information about investment support received (only for wind energy producers);

licence number and validity start date (only for electricity producers with capacity over 100 kW);

information on environmental permits needed for production.

CHP producers must also submit, in addition to the information above:

data on compliance of the measurement of electrical and thermal energy with relevant Estonian legislation;

the energy source used each time for electricity production;

lower calorific value of the fuel used (MJ/kg; MJ/m3);

amount of useful heat produced and means of usage.

Elering has the right to request data necessary to verify the submitted information from the producer.

If the data submitted by the producer changes, the producer must notify Elering immediately.

After receiving all necessary information from the producer and verifying the data, Elering registers the producer’s production equipment for subsidy receipt and makes a decision on the qualification of the production equipment for receipt of a subsidy.

Guidelines for applying for subsidies

The producer submits an application/invoice to receive a subsidy for electricity produced and offset hourly against the grid for the previous month by the seventh (7th) day of the month by email to resupport@elering.ee. For private individuals and those who are not liable for VAT, the basis for payments is an application submitted through the Data Warehouse. Those liable for VAT need to submit an invoice that complies with the legislation. Invoices for the previous period must be submitted by the 7th day of the month at the latest. The subsidy is paid out to the bank account indicated on the invoice on the 21st day of the month, or on the next working day.

In accordance with the Electricity Market Act, an electricity producer using renewable energy and CHP sources (hereinafter: Producer) has the following monthly obligations:

5th day of the month (working day) – the Producer submits data on total electricity production listed by production equipment to the transmission system operator, Elering, as well as data on electricity volumes produced in the previous month from renewable sources or CHP. Data is submitted electronically to resupport@elering.ee.

7th day of the month (working day) – the Producer submits an application and invoice to receive a subsidy for electricity produced and offset hourly against the grid for the previous month. Invoices are submitted electronically to arved@elering.ee and resupport@elering.ee.

21st day of the month (or the following working day) – Elering pays the invoice based on the subsidy application.

Yearly obligations for determination of the additional costs for financing of renewable energy and CHP subsidies:

1 November – Producers send Elering their production forecasts for the next calendar year. The distribution network operator and line possessor send Elering their forecasts for the volume of network services offered and the volume of electricity consumed through the producer’s line for the next calendar year.

1 December – Elering publishes information on the next year’s additional costs for financing of renewable energy and CHP subsidies on its website.